Emerging Markets Fixed Income
Our Emerging Markets Fixed Income strategies provide attractive long-term returns with moderate volatility by investing in emerging and frontier market sovereign debt. These strategies are characterized by a low correlation with global risk drivers and offer resilience in periods of high uncertainty.
What we do
Many emerging markets are structurally and economically better positioned than developed nations in terms of their balance of payment surpluses, foreign exchange reserves or economic growth. These attractive fundamentals give them a compelling risk-return profile. We invest in public sector bonds issued by emerging and frontier markets as well as the bonds of supranational issuers.
We cover more than 160 countries across emerging and frontier markets.
- The emerging market universe consists of round about 30 countries, including Brazil, India, China, Mexico and South Africa.
- The frontier market universe comprises more than 130 countries, including Angola, Georgia, Kenya, Uganda and Vietnam.
From this vast universe, we select countries that are best positioned to foster sustainable economic growth.
Our approach – why partner with us
We invest in bonds issued in the public sector of emerging and frontier markets as well as supranational issuers. The investment process consists of four steps: country selection, valuation and instrument selection, portfolio construction and portfolio monitoring.
- Attractive risk/return profile – We actively manage country and currency exposure as well as the instruments selected with the aim of achieving an attractive risk/return profile.
- Diversification – Emerging and frontier market investments offer diversification potential as these countries’ returns tend to have a relatively low correlation to global capital markets and to each other.
- Country framework – We aim to create alpha by identifying countries that are developing positively while avoiding those on a downward path.
- Active portfolio management – Through active portfolio management, we strive to generate alpha over a market cycle and dynamically calibrate the portfolio as opportunities and risks evolve over time.
Team – an average of 20 years of industry experience
Our Emerging Markets Fixed Income team follows a strong and collaborative approach and draws on the extensive expertise of eight investment professionals with portfolio management and research responsibilities.
Inspired by colleagues and complex data analysis
“In 2021, our team moved from Finland to Switzerland to join LGT Capital Partners. Working in an international organization surrounded by skilled and highly motivated colleagues is a truly inspiring experience. My role involves integrating ESG aspects into Emerging Market sovereign research – meaning it is closely aligned with my own interests.”
Stability and long-term thinking
“I joined LGT Capital Partners in 2014 and I value its exceptional stability combined with its long-term perspective. At the same time, I appreciate having the freedom to develop and grow professionally in my role. Individual teams are given a high degree of self-determination that fosters an entrepreneurial culture in which every team member is motivated to contribute to the firm’s overall success. I also enjoy the daily interaction with my colleagues, who share the same passion for emerging and frontier market debt and are committed to delivering high-quality service to our long-term investors.”
Empowering and motivating working model
"The respectful and entrepreneurial culture at LGT Capital Partners made me feel at home from day one. Being a values-driven individual, I find our governance model and way of working, which align our interests with those of our investors, to be very empowering and motivating. Our long-term focus on delivering value and on building partnerships with all our stakeholders is unique within the investment management industry. LGT Capital Partners really succeeds in unlocking the potential of its people to drive value creation."